Colgate-Palmolive emerges as Wall Street's favorite bet for 2026 within the consumer goods sector

Experts project an accelerated recovery with sales growth surpassing that of their competitors

After a challenging 2025, during which their shares fell more than 10%, Colgate-Palmolive now positions itself as Morgan Stanley’s top choice in the Home and Personal Care segment. Analysts have set a price target of $87 per share, representing a potential appreciation of 13% from current levels.

A recovery grounded in solid fundamentals

The company, known for its personal care and household cleaning products, faces a more favorable outlook for the coming year. Although the packaged consumer goods industry experienced widespread weakness during 2025, analysts believe that Colgate-Palmolive is well-positioned to significantly differentiate itself from its peers.

The projection of a 3% organic sales growth for 2026, accompanied by a 6% increase in earnings per share, is considered “reasonable” by experts. However, the most important aspect is the expectation that this growth rate will outpace that of its direct competitors.

Key factors for acceleration

Analysts identify several elements that will support this recovery. First, year-over-year comparisons will be more favorable after the particularly strong performance recorded in 2024. Additionally, a more dynamic expansion in emerging markets and a regain of market share in its oral care division are anticipated, an area where the company has shown significant potential.

Although organic sales growth contracted to just 0.4% in the October quarterly report — the most critical point of the year — Morgan Stanley now projects that Colgate-Palmolive will outperform competitors in organic growth in the upcoming quarters.

Market outlook

The reaffirmation of the “overweight” rating reflects analysts’ confidence in an upward trajectory. However, Wall Street maintains cautious expectations regarding the guidance that management will provide in upcoming reports, considering that the company might adopt a conservative approach in its projections.

Shares rose 5% last Thursday, closing above $81. Despite this positive movement, the stock has declined approximately 7% over the past year, reflecting the turbulence experienced by the consumer goods segment during this period.